Greek Drama Reignites as Samaras Fails in Parliament
Petar Nola
Greek drama is about to unwind again as the Greek Prime Minister Samaras didn’t manage to get the parliamentary backing for his presidential candidate for the third times. This means new election is coming to Greece and prospects are strong the radical leftist party Syriza will win. Markets fell on the news since Syriza is... Read more
Greek drama is about to unwind again as the Greek Prime Minister Samaras didn't manage to get the parliamentary backing for his presidential candidate for the third times. This means new election is coming to Greece and prospects are strong the radical leftist party Syriza will win. Markets fell on the news since Syriza is effectively advocating opposite policies of those that were Greek reality during the last few years. Athex Composite fell 11% on the news at 10.31 GMT, to 759.33 as the parliament finished voting. In the mean time it recovered some ground and stands at -6.75%. Early election will likely take place at January 25th. Markets are worrying since Tspiras, Syriza leader lured voters by promises of recovery, ditching the austerity and structural reform and renegotiating the debt. Banks led the drop in equities in Athens. European stocks followed, with Stoxx Europe 600 falling to 341, or 0.8 percent, before recovering to 343.13, or 0.2 percent. The index opened the trading day in plus, reaching up to 345 points. Athena drop was the worst of 18 european markets. Markets are skeptical since another radicalization in Greece is a reminiscence of 2011 and 2012 when european countries held series of a meetings, failing to do anyhting. Markets calmed following the ECB president’s Draghi announcement in London in Summer of 2012, he will do “whatever it takes to save the Euro”. Short bets on an ETF of Greek equities climbed in December to the highest level since May 2012, just before the benchmark Athex fell to a low in the wake of the nation’s debt restructuring. DAX in Frankfurt also fell on the announcement to 9839 intraday low, while it recovered to 9840.75 at 12.45 GMT, a drop of 0.78 percent nonetheless. Syriza wants to end austerity and renegotiate the debt while starting a generous spending programs. It is hard to see who would finance that. European institutions are also reluctant to write off greek debt in their portfolios, especially the ECB which has a considerable amount.
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Greek Drama Reignites as Samaras Fails in Parliament

Stoxx600Greek drama is about to unwind again as the Greek Prime Minister Samaras didn’t manage to get the parliamentary backing for his presidential candidate for the third times. This means new election is coming to Greece and prospects are strong the radical leftist party Syriza will win. Markets fell on the news since Syriza is effectively advocating opposite policies of those that were Greek reality during the last few years.

Athex Composite fell 11% on the news at 10.31 GMT, to 759.33 as the parliament finished voting. In the mean time it recovered some ground and stands at -6.75%. Early election will likely take place at January 25th. Markets are worrying since Tspiras, Syriza leader lured voters by promises of recovery, ditching the austerity and structural reform and renegotiating the debt. Banks led the drop in equities in Athens.

European stocks followed, with Stoxx Europe 600 falling to 341, or 0.8 percent, before recovering to 343.13, or 0.2 percent. The index opened the trading day in plus, reaching up to 345 points. Athena drop was the worst of 18 european markets. Markets are skeptical since another radicalization in Greece is a reminiscence of 2011 and 2012 when european countries held series of a meetings, failing to do anyhting. Markets calmed following the ECB president’s Draghi announcement in London in Summer of 2012, he will do “whatever it takes to save the Euro”.

Short bets on an ETF of Greek equities climbed in December to the highest level since May 2012, just before the benchmark Athex fell to a low in the wake of the nation’s debt restructuring. DAX in Frankfurt also fell on the announcement to 9839 intraday low, while it recovered to 9840.75 at 12.45 GMT, a drop of 0.78 percent nonetheless.

Syriza wants to end austerity and renegotiate the debt while starting a generous spending programs. It is hard to see who would finance that. European institutions are also reluctant to write off greek debt in their portfolios, especially the ECB which has a considerable amount.

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